Question

Question 14

Customers of a hardware store are willing to buy

Q = 80 − P ²

boxes of nails at P rand per box. Find the marginal revenue if the price per box is R3.

a.       R−53.00

b.       R71.00

c.       R53.00

d.       R−71.00

Answer 1

$\text{The total revenue function is given as Q(p) × p }$

$\text{We represent our total revenue function as R(p)}$

$\text{Therefore } R(p) = p(80 - p^2)$

$\text{By differentiating R(p), \\we obtain our marginal revenue}$

$R'(p) = 80 - 3p^2$, $\text{ we substitute the value of p for 3 in } R'(p)$

$\text{Therefore R'(p)}=R53$